Virtus Diversified REIT Strengthens Portfolio with Sudbury Acquisition
Deal News | Jun 04, 2025 | Globenewswire
Virtus Diversified REIT has acquired the Nickel District Apartments in Sudbury, Ontario, enhancing its multi-family residential segment. The property includes 114 units and is strategically located near major retailers. The acquisition, for $24.35 million, aims to leverage strong market fundamentals and generate revenue upside due to a 21% gap-to-rent. This aligns with the REIT's strategy of building a diversified portfolio in secondary and tertiary markets in Canada and the US. The acquisition is financed through CMHC-insured mortgages, benefiting from favorable rates. The management expressed ambitions for further acquisitions, underscoring their strategy of acquiring assets with strong fundamentals.
Sectors
- Real Estate Investment Trust (REIT)
- Multi-Family Residential
Geography
- Canada – The acquisition of the Nickel District Apartments is situated in Sudbury, Ontario, Canada, which is where Virtus Diversified REIT is executing its expansion strategy.
- United States – The article mentions Virtus Diversified REIT's focus on acquiring properties across both Canada and the United States, indicating its operational geography.
Industry
- Real Estate Investment Trust (REIT) – This industry classification is relevant as the article focuses on the acquisition activities of Virtus Diversified REIT, a firm involved in managing and acquiring properties.
- Multi-Family Residential – The article centers on the acquisition of a multi-family residential property, highlighting developments in this specific sector of the real estate industry.
Financials
- $24.35 million – The purchase price for the Nickel District Apartments acquisition.
- 21% gap-to-rent – The potential revenue upside opportunity identified with the acquisition.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Virtus Diversified REIT | Buyer | Company | A real estate investment trust focused on obtaining and managing properties in secondary and tertiary markets across Canada and the United States. |
| Virtus Capital Corporation | Asset Manager | Company | The asset manager of Virtus Diversified REIT, responsible for the oversight and strategic direction of real estate acquisitions and portfolio management. |
| Nickel District Apartments | Target | Company | The 114-unit apartment building acquired by Virtus Diversified REIT, located in Sudbury, Ontario. |
| Aurelio Baglione | CEO | Person | CEO of Virtus, responsible for leadership and strategic direction. |
| Josh Will | President | Person | President of Virtus, involved in strategic planning and execution. |